ShawnaShawna Neilson Neilson IndonesiaIndonesia

International Marketing Project:

Shawna Neilson Crater School of Business June 21, 2010

Table of Contents

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Introduction ...... 3 Geography ...... 4 Economic Analysis...... 5 Economic Analysis Part II...... 8 Political System ...... 11 Trade Laws ...... 13 Population...... 14 Diet and Nutrition...... 16 Housing and Communication...... 17 Transportation...... 19 Labor...... 20 Education...... 22 Clothing ...... 24 Recreation and Leisure...... 26 Language ...... 27 Religion ...... 29 Bibliography ...... 30 Appendix ...... 34 Current Events...... 34 Travel Brochure ...... 35 Images ...... 36 Etiquette ...... 37 Country Selection Letter ...... 38 Company Profile ...... 40

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Introduction

In the pages to come, many topics will be discussed providing an overview of Indonesia. The purpose of the document is to inform the reader of possible business potential in Indonesia while providing a base knowledge. The topics discussed are designed to give the reader an understanding of life and Indonesia.

The first section is a geographical analysis. It aims to inform the reader of Indonesia’s topography, climate, as well as how geography may affect a business. The next two sections discuss many parts of Indonesia’s economy ranging from economic classification to currency information. Following economics is a section about the political system of Indonesia. It basically provides a description of the government system and its different parts. Information on trade laws and a legal analysis are provided in the next section. The following sections are mainly about the people. The next section gives statistics and demographic descriptions about the population. Diet and Nutrition is the next section, it basically discusses Indonesian food and eating habits. Housing and transportation are the next two sections. Housing describes the structure of homes in Indonesia as well as giving statistics about urban and rural dwellings. The transportation gives basic information about different modes of public and private transportation. Labor is the next section covered. In this section, statistics are presented about the labor force concerning gender and occupation. The next section topic is education. A description of the education system is provided in addition to statistics about enrollment. The next section covers the clothing of Indonesia. The topic after clothing is recreation and leisure. Descriptions about some of the most common recreational activities are provided in this section as well as basic travel information on entering and exiting Indonesia. The last two topics and religion. Language presents the official language as well as minor languages in addition to some statistics. Religion, the final section covers the major religions in Indonesia and provides some statistical information.

When choosing a country, I thought of countries that I have personal interest in. Indonesia was one of the countries that came to mind because my grandmother was born and raised in Indonesia. I looked at information for all of the countries that I was considering. In doing so, I learned that Indonesia is a fabulous place for tourism, as there are many tourist attractions. Indonesia is a beautiful country and would be fabulous for a tourism business.

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Geography

Indonesia is an island country consisting of over 13,000 islands. 6,000 of these islands are inhabited. Although the overall land area is only 1,192,608 square miles (1,919,317 square kilometers), it would be easy to establish a franchise throughout this island country.

Indonesia can be found north of Australia and South of the and . The easiest methods for product distribution between islands would be either ship or aircraft. Within each island, products can be distributed by land or aircraft. There are many distribution methods available based upon the location of distribution points. It would be easy to transport products to other countries such as , Malaysia, Australia, the Philippines, as well as China, Japan, and many others because these countries are fairly close and the waterways offer an easy travel route. One of the down sides Indonesia being an island country is that there would be some distance between locations on different islands. Overall, the location could serve useful in product distribution.

Rainfall is the most variable aspect of Indonesia’s climate. Since the country is surrounded by warm waters, temperatures remain fairly constant with a high humidity. Throughout the country, temperatures range from approximately 73˚F to 82˚F. Indonesia is mostly tropical because it is divided by the equator. The tropical climate would be good for setting up a business in tourism. For the most part, winds are moderate and tend to be predictable. Unfortunately, monsoons are fairly regular. During June through September, they can be expected to blow in from the south and east. During December through March, they can be expected to come from the northwest. Although storms can be serious, they are dealt with frequently and therefore precautions can be taken to prevent damage.

Indonesia’s islands follow a similar pattern in relation to topography. The larger islands have lowlands and costal plains that surround central mountain ranges. Indonesia has over 100 volcanoes, some active others inactive. Rich volcanic soil is carried down from volcanic slopes by rivers and into the lowlands and costal plains. For this reason, rich volcanic soil is predominate in Indonesia. Due to this, Indonesia is strong agriculturally. Also, Indonesia has many mineral deposits, which provides for excellent mining. Indonesia’s petroleum deposits has allowed for the country to be one of the leading petroleum producers.

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Overall, this archipelago country is surrounded by warm waters and has a tropical climate. The larger islands are characterized by central mountain ranges rising from lowlands and coastal plains. There are many volcanoes and the soil is very fertile. Indonesia has many mineral and petroleum deposits. This island country would be great for establishing a franchise. There could be business locations scattered amongst the islands. The tropical climate is great for a tourism business.

Economic Analysis

Socialism

The government plays a significant role in the Indonesian economy, therefore making it socialist. The government does not regulate prices on all goods, but it does on some such as fuel, rice, and electricity. Starting in the 1980s, the government began removing some economic regulations in hope of stimulating employment and growth, mainly in the non- oil export sector.

Throughout the last few years, Indonesia has been able to maintain a fairly steady economy and has weathered the global crisis with some level of ease. Even through the financial crisis, Indonesia has been able to maintain GDP growth.

Non-Renewable Resources  Crude Oil – Unrefined petroleum taken from the ground, it is refined and used for fuel. Crude oil is Indonesia’s largest export commodity.  Natural Gas – Combustible substance that is formed in rocks, it is used for fuel and also one of Indonesia’s top export commodities.  Bauxite – Claylike mineral containing aluminum  Silver – Mineral that is commonly used for jewelry, coins, electronics, and photography  Tin – Metallic mineral mainly used to coat other metals in order to prevent corrosion.  Copper – Reddish brown, metallic mineral that is a great conductor of heat and electricity. It is commonly used in electrical wires, water pipes, and to make corrosion resistant parts.  Gold – Precious metallic mineral, commonly used in jewelry and for decoration. It has a high monetary value and is used internationally.  Coal – Black combustible mineral, widely used for fuel and is one of the main energy sources used to produce electricity. Indonesia primarily exports its non-renewable resources.

Renewable Resources  Timber – Wood obtained from trees, commonly used for building.  Rubber – A natural substance harvested from rubber trees. It is primarily used for manufacturing purposes. Indonesia is the second largest producer of natural rubber and it is therefore an important export.  Rice – A starchy grain of a marshy grass. Indonesia is on of the world’s leading

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rice producers. It is one of Indonesia’s top export commodities, but it is also a very common food for all classes in Indonesian society.  Palm oil – Yellow, butterlike oil used as an edible fat and for making soap and candles.  Coffee – Beans taken from a coffee tree. They are ground to make a coffee drink. Indonesia is currently the fourth largest coffee producer in the world.  Cotton – A soft, white, down substance consisting of hairs or fibers attached to the seeds in cotton producing plants. It is used to make fabrics, thread, and wadding. In Indonesia cotton is used to make textiles.

Industries  Crude Oil and Natural Gas – The production of oil and natural gas. It is taken from the ground and processed from there. MedcoEnergi, National Oil and Natural Gas Mining Company (Pertamina), Cheveron, BP, ConocoPhillips, ExxonMobil, and Total are all oil production companies in Indonesia.  Textiles – Cotton and other fibers are turned into cloth. Adetex, Around Star, Aditya Birla, Narmada Textiles, and P.T. Ever Shine Textile are all textile companies in Indonesia.  Apparel – Textiles are made into clothes. Metramatex, Mitra Usaha Semsta, Adetex, Apac Inti Corpora, Mimilove, and Ayu Orchid are all Indonesian apparel companies.  Footwear – The manufacturing of shoes. Loggo, Golden Summit Trading Co., Anugrah Mandiri Nusantara, Dragon Shoes Company, and Pelita Tomangmas are Indonesian footwear companies. East Asia Minerals Corporation, Freeport McMoran Copper & Gold Inc., Newmont Mining Corp., Kartika Selabumi Mining, Pendopo Coal, and Britmindo are mining companies in Indonesia.  Mining – Minerals and ores are extracted from mines.  Cement – The production of cement. Indocement Tunggal Prakarsa, Holcim Indonesia, Semen Gresik (Persero), Semen Andalas Indonesia, Asosiasi Semen Indonesia, and Semen Padang are cement companies in Indonesia. Chemical Fertilizers – The production of chemical fertilizer. Toepfer International-Asia, Petrokimia Gresik, Taiko Persada Indoprima, Yara Indonesia, and Pupuk Kujang are Indonesian chemical fertilizer companies.  Plywood – The manufacturing of plywood in a mill using timber. Natko Pacific, Daya Sekawan Abadi, Girisantosa Adiraya, Kayu Lapis Indonesia, Inracawood Mfg., Tjipta Rimba Djaja, and Saya Raya Indah Woodbased Industries are plywood manufacturers in Indonesia.  Rubber – The extraction of rubber from rubber trees.  Food – The production of foods.  Tourism – The hospitality industry, a mixture of hotels and companies that assist people in organizing a trip to visit Indonesia, usually for vacation purposes.

GDP Official Exchange Rate – $521 billion

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To the left is a graph Total GDP Purchasing Power Parity representing the total GDP purchasing power parity of $2,000.00 four countries, including Indonesia. Indonesia is being $1,500.00 compared to South Korea, $1,000.00 Italy, and Turkey. These $500.00 three countries are similar to Indonesia concerning

Dollars (in billions) $0.00 political systems, economic Indonesia South Italy Turkey development, population, and Korea size. The purchasing power Country parity basically allows for the comparison of countries within the same parameters. This helps to eliminate differences between countries. Knowing the purchasing power parity is important to a business coming into a country because it shows how wealthy the country is and how economically developed it is.

GDP Real Growth Rate

6 4.5

4 2 0.2 0 -2 Indonesia South Italy Turkey Korea -4

Percent Growth (%) Growth Percent -6 -4.8 -5.6 -8

Country

Gross National Income Per Capita (PPP) $50,000 $40,000 $30,000 $20,000 $10,000

Dollars Per Capita $0

(International Dollars) a ly S Ita U ore urkey K donesia T In outh S Country

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Economic Analysis Part II

The following Trade Statistics are an overview of Indonesia’s exports, imports, and currency, allowing for a more in-depth understanding of Indonesia’s international trade.

Major Exports  Oil and Natural Gas  Crude Palm Oil  Coal  Appliances  Textiles  Rubber  Plywood  Minerals

Indonesia’s major export partners include Japan (20.2%), the US (9.5%), (9.4%), China (8.5%), South Korea (6.7%), India (5.2%), and Malaysia (4.7%) (2008 est.). In 2008, an estimated $139.3 billion came from exports. In 2009, there were an estimated $115.6 billion in exports. Oil, coal, natural gas, palm oil, and rubber are all natural resources found in Indonesia. They are exported as raw materials, prior to any necessary refining.

2007 Export Statistics 1. Oil and Gas – $22.1 Billion 2. Minerals – $21.8 Billion 3. Electrical Appliances – $15.1 Billion 4. Rubber – $7.8 Billion 5. Textiles – $4.1 Billion

Export Partners 4.70% Japan US 5.20% 20.20% Singapore 6.70% China 8.50% South Korea 9.40% 9.50% India Malaysia

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Major Imports  Oil and Fuel  Food  Chemicals  Capital Goods  Consumer Goods  Iron and Steel

Indonesia’s major import partners include Singapore (16.9%), China (11.8%), Japan (11.7%), Malaysia (6.9%), the US (6.1%), South Korea (5.4%), and Thailand (4.9%) (2008 est.). In 2008, there were an estimated $116 billion in imports and in 2009, there were an estimated $86.6 billion in imports. Indonesia imports capital goods such as machinery for the many manufacturing industries.

2005 Import Statistics 1. Mineral Fuels – $17.5 Billion 2. Machinery – $15.3 Billion 3. Chemicals – $8.1 Billion 4. Consumer Goods – $7.8 Billion 5. Food – $4 Billion

Import Partners

4.90% Singapore 5.40% 16.90% China 6.10% Japan Malaysia 6.90% US 11.80% South Korea 11.70% Thailand

Indonesia imports some goods due to problems of scarcity. For instance, Indonesia must import machinery for its manufacturing industries. Iron and steel are also imported. Food and live animals must be imported, as well. Most of the goods imported in Indonesia are imported due to problems of scarcity.

Balance of Payments - There is a trade surplus in Indonesia with a $29 billion surplus.

There is a fair trade surplus in Indonesia, meaning Indonesia is selling more than it is buying. This is good because it means that the country is not overspending. It is important to know this because it can indicate either a strong or weak economy based upon whether the country has a trade surplus or deficit. Since Indonesia has a trade surplus, it is indicated that Indonesia has a strong economy.

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The exchange rate between countries is the ratio at which one unit of the currency of one country can be exchanged for the currency of another country. Since Indonesia has a low currency value in comparison to USD, someone from the US would be at an advantage if he/she were purchasing something in Indonesia. On the other side, a company from the US selling products in Indonesia may have a small profit margin or the products may seem overpriced. It may be beneficial for a company to buy products in Indonesia, but it most likely would not be to sell products in Indonesia.

Indonesian Rupiah – Currency

10,399.2 Indonesian Rupiah per US dollar (2009)

Inflation Rate (2009 est.)

7% 6.50% 6% 5% 5% 4% 2.80% 3% 2% 1% 0.60% 0% Percent Inflation (%) -1% Indonesia US Turkey Italy South Korea -2% -0.70% Country

Unemplioyment Rates (2009 est.)

16.00% 14.50% 14.00% 12.00% 9.30% 10.00% 7.70% 7.50% 8.00% (%) 6.00% 4.10% 4.00% 2.00%

Percent Unemployed 0.00% Indonesia US Turkey Italy South Korea Country

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Political System

Pancasila is the Indonesian state’s philosophical foundation. It basically consists of five main principals. They are the “belief in the one and only God, just and civilized humanity, the unity of Indonesia, democracy guided by consensus arising out of deliberations amongst representatives,” and “social justice for the whole of the people of Indonesia” (indonesiamatters.com). The government structure is much like that of the US. It has an executive branch, a legislative branch, and a judicial branch. The supreme power rests within the people.

Republic – Much like a democracy, in a republic, the supreme power rests in the people. The power is exercised by representatives either chosen directly or indirectly by the people.

The executive branch of Indonesia’s government consists of a president, a vice president, and a cabinet appointed by the president. The president is the chief of state as well as the head of government. Both the president and vice president are elected for five-year terms and may serve two terms. The current president is Susilo Bambang Yudhoyono and the current vice president is Boediono. The legislative branch consists of three houses. People's Consultative Assembly (Majelis Permusyawaratan Rakyat or MPR), the upper house, is made up of representatives from the other two houses. This house plays the role of inaugurating and impeaching the president as well as making amendments to the constitution, but it does not form national policies. The House of Representatives (Dewan Perwakilan Rakyat or DPR) is made up of 560 seats. Members of DPR are elected to serve five-year terms. DPR makes legislation at the national level. The House of Regional Representatives (Dewan Perwakilan Daerah or DPD) is made up of 132 members. There are four from each of Indonesia’s 30 provinces, two special regions, and one special capital city district. According to Indonesia’s constitution, the role of DPD is to give legislative input to DPR on issues involving the regions. The judicial branch consists of the court system. The Supreme Court (Mahkamah Agung) is the highest court of appeal, but it doesn’t have the power of judicial review. The lower court system’s administrative and financial responsibility belongs to the Supreme Court. The president appoints Supreme Court justices from a list of candidates chosen by the legislature. Constitutional Court (Mahkamah Konstitusi) has the power of judicial review, reviews actions to impeach a president, and has jurisdiction over the results of general elections. Labor Court is under the supervision of the Supreme Court. Finally, the Anti-Corruption Court has jurisdiction over cases involving corruption that were brought by the independent Corruption Eradication Commission.

The major political parties in Indonesia are the Democrat Party (Partai Demokrat or PD), Functional Groups Party (Partai Golongan Karya or GOLKAR), Great Indonesia Movement Party (Partai Gerakan Indonesia Raya or GERINDRA), Indonesia Democratic Party-Struggle (Partai Demokrasi Indonesia Perjuangan or PDI-P), National Awakening Party (Partai Kebangkitan Bangsa or PKB), National Mandate Party (Partai Amanat Nasional or PAN), People’s Conscience Party (Partai Hati Nurani Rakyat or HANURA), Prosperous Justice Party (Partai Keadilan Sejahtera or PKS), and United Development

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Party (Partai Persatuan Pembangunan or PPP). The Democrat Party envisions a democratic and prosperous world through nationalism, humanism, and internationalism based upon a devotion to God. The Functional Groups Party was established to counterbalance the Indonesian Communist Party. It was formed in order to represent all of Indonesia’s social and economic groups. This includes workers, professionals, farmers, civil servants, veterans, and fisherman. The Great Indonesia Movement Party is based upon the belief in national unity and the dedication to all around fairness and prosperity. The Indonesia Democratic Party-Struggle is a non-Islamic political party. In the past it has had anti-governmental factions. The National Awakening Party supports religious tolerance and democracy. They are in opposition of an Islamic government. The National Mandate Party is based on principles of religious morality, humanity, and prosperity. The People’s Conscience Party is based upon independence as a nation and the welfare of the people of Indonesia. The Prosperous Justice Party is an Islamic party that believes in Islam as the solution in the life of the nation, spreading Islamic values and teachings, helping Indonesia to progress as a civil society, and uniting people and smaller entities through Islam. The United Development Party is an Islamic party that bases its visions on the beliefs of Islam.

Political Leaders President Susilo Bambang Yudhoyono Vice President Boediono State Secretary Maftuh Basuni

Indonesia has had some conflict over the past few years. A war on terror is continuously being fought after terrorist bombings in Bali in 2002. The current president was elected in 2004 and served a term of five years. He was reelected in 2009 and will be in office until 2014. The government has remained stable through the war.

The Indonesian legal system is based on Roman-Dutch law but has been substantially altered by Indonesian concepts as well as new election codes and criminal proceedings.

Suffrage – “17 years of age; universal and married persons regardless of age” (CIA World Factbook)

The Indonesian flag is based on the 13th century Indonesian Empire Banner. The red stripe represents the body and the white stripe represents the soul. It was officially adopted August 17, 1945.

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Trade Laws

Trade in Indonesia is governed my many laws and taxes. An import duty is applied to any goods that are imported for home use such as rice and electricity. Indonesia is part of many Trade Agreements and has few import restrictions due to this. Most of the trade restrictions in place are either to promote economic stability or to ensure quality.

“All goods imported for home use, except those exempted, are subject to import duty based on the Indonesian Customs Tariff” (indonesianmission-eu.org). Specific tariffs are based upon a specified amount per unit of measurement. There is currently a tariff on electricity in Indonesia. Based upon ranges per kilowatt-hour (kWh) in US cents per kWh. Residentially, tariffs range from 1.69 – 4.60. Commercially, tariffs range from 2.77-5.65. Industrially, tariffs range from 1.71-4.38. There is also a tariff on rice. Currently, it is 450 Rupiah/kg.

Import Taxes Ranging from 0 – 170%, there are import duties on various types of goods. The rate varies by type of good. Value added tax, ranging from 0 – 10%, is also applied. Sales Tax on Luxurious Goods can be 10%, 20%, 35%, 40%, or 50%, depending on the types of goods. Importers must pay an income tax. Registered importers pay 2.5% and unregistered importers pay 7.5%. All taxes and duties are paid through a foreign exchange bank or a Customs Service Office before Customs or import Declaration is submitted. Goods are classified based on the Harmonized Commodity Description and Coding System (HS)

Trade Agreements There are many Trade Agreements with countries around the world that Indonesia is part of. The General Agreement on Tariffs and Trades (GATT) is the largest of which. Indonesia joined the World Trade Organization (WTO) in 1996 after its introduction by GATT in 1994. Indonesia is also part of some regional agreements such as Asia-Pacific Economic Cooperation (APEC) and ASEAN Free Trade Area (AFTA).

Trade Restrictions Only a few restrictions still apply to imports due to trade agreements. “According to the Nation Agency For Export Development (NAFED) imports that are still prohibited include: motorized vehicle tires, electric light bulbs, matches, some types of textiles, batteries, iron sheets both galvanized and un-galvanized, fully assembles automobiles and motorcycles and radio and television sets” (internationalbusiness.wikia.com). Many of these goods are produced in Indonesia and are prohibited because their production is view as important to the stability of Indonesia’s economy. There is one main restriction that includes both imports and exports is the shipping restriction. It basically states that any goods either entering or leaving the country must be transported on an Indonesian vessel. Some specific export regulations apply. Generally, agricultural products including plants, food, and animals must pass an inspection by one of the corresponding governing sectors, this pertains to both imports and exports.

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Population

Population distribution, growth rate, and the population of the five largest cities are the most pertinent information. The population distribution is the first step in determining demographics needed for a business. The growth rate tells us that there is substantial growth in the population meaning more potential customers. Knowing the largest cities, their locations, and basic information about them, helps in determining possible locations for a business. A foreign business would do well close to a major city because of potential customers, for most product types.

Population – 242,968,342

Population of the Top Five Largest Cities in The population growth rates Indonesia appear to be rather low, but 12 10.8104 1% of 250 million is 2.5 10 million. Having said that, Indonesia has a fairly high 8 growth rate. It also has the 6 fourth largest population in the world. 4 2.8843 2.7293 2.0593 2 1.4623 Population (in Millions) 0 Jakarta Bandung Surabaya Medan City

Indonesia’s birth rate is comparable to Brazil, but Birth Rate obviously higher than the US. The US has a larger 20 18.45 18.11 population than Indonesia. 13.83 15 Although the United States’ birthrate is lower, it 10 is still high. The birth rates are high because there is a Population 5 Births Per 1000 large population with large 0 population growth. Indonesia US Brazil

Country

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Indonesia’s life Life Expectancy expectancy is about the

80 same as Brazil’s and a 78.24 fair amount lower than 78 the US’s. The US’s is 76 most likely higher 74 72.26 because it is much more 71.05 72 developed. Brazil has a 70 Age in Years similar development the 68 Indonesia. 66 Indonesia US Brazil Country

The number of males and the Population Distribution number of females are fairly even throughout the age 90 80.8 80.1 80 Male groups. The largest portion of 70 Female the population ranges from age 60 15 – 64. These are both good. 50 The middle generation is more 34.3 40 33.1 likely to participate in

Millions) 30 20 activities and because there is 6.5 8.2 10 a comparable number of Number of People (in Number of People 0 females to males, one activity 0-14 15-64 65+ most likely will not be favored Age Range over another because of a lack of interest due to gender.

Population of the Top Five Largest Cities Located on the north – in Indonesia western tip of is Jakarta, 12 10.8104 Indonesia’s capital and 10 largest city. Bandung, the second largest city in 8 Indonesia, is located slightly 6 south – east of Jakarta, also on Java. It is located inland 4 2.8843 2.7293 2.0593 and it is surrounded by hills 2 1.4623 and mountains. Surbaya, the Population (in Millions) third largest, can be found in 0 the north – eastern part of Jakarta Bandung Surabaya Medan Palembang City Java. Jakarta and Surbaya are both located along the coast.

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Diet and Nutrition

Indonesian meals are usually simple, yet unique. Many different spices, roots, leaves, and grasses are used in Indonesian foods adding a zesty flavor. Spices including chili peppers, ginger, coriander, and cumin are commonly used. Rice is used in most meals. If rice is not used, soybeans or yams are usually substituted. Vegetables are also a very important part of Indonesia foods. Fish, chicken, and meats are commonly eaten. Sumatrans and Eastern Indonesians usually eat more fish than chicken, where as Javanese and Sudanese eat a more balanced variety of chicken, fish, and meats. Most Indonesia families don’t have a set meal time so a large meal is cooked in the late morning. The same meal is then reheated for an evening meal. Meals are generally cooked so that they last and remain edible even if left on the table at room temperature for hours after the meal is served.

This means that on Calorie Supply Per Capita average, for each person in Indonesia, 8.3 kg of 4 3.7 meat was consumed. 3.5 2.9 2.9 This is much lower than 3 countries of similar 2.2 2.5 development based on 2 the Human Development 1.5 1 Index (HDI). (in thousands) 0.5 0 Calories Consumed Per Day Indonesia United States Mali Uruguay Country

This shows that 28% of Percent Children Underweight 2000-2007 Children Under 5 children under age 5 are either moderately or 30 28 28 severely underweight in Indonesia. This is the 25 same as the Philippines, 20 but less than Honduras 15 and Bolivia. It is fairly 11 10 8 high, which shows that many of the children are 5 Percent Underweight (%) not being taken care of. 0 Indonesia Honduras Bolivia Philippines Country

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This graph shows Calorie Supply Per Capita on average, 2,900 4 3.7 calories are 3.5 consumed each day 2.9 2.9 3 per person. This is 2.5 2.2 comparable to 2 countries of middle Day 1.5 development. Uruguay has a

(in thousands) 1 0.5 higher per capita

Calories Consumed Per GDP, but the same 0 calorie supply per Indonesia United States Mali Uruguay capita. This implies Country that Indonesians consume a healthy amount of calories. It is less than the US, and greater than Mali. The US is well known for each obesity rates so it is good that Indonesia has a lower calorie supply per capita.

Housing and Communication

The structure of houses in Indonesia depends upon location. Those located within a city in most cases will live in apartment complexes. Those living in a suburban neighborhood usually live in housing developments. Urban villages are usually comprised of crude houses or huts. Houses in rural villages are mainly made of wood or bamboo. Telephones are widely used. Mobile phones are extremely common and the number of cellular subscribers is growing rapidly. Internet is very commonly used. Television services are available throughout Indonesia. Both internet and television would be a viable source advertisement.

Approximately 48% of Indonesians live in rural villages. Most village houses are made of wood or bamboo. They are simple one or two room buildings. The other half of Indonesians is spread throughout cities, suburban settlements, and urban villages. Within the city modern high-rise apartment complexes are available. There are also suburban housing developments that are just outside the main parts of cities. Urban villages, referred to as kampung, are crowed with makeshift, houses and huts.

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Urbanization

90 82 77 80 70 60 50 42

(%) 40 30 26 20 10 Percent Urbanization 0 Indonesia US Brazil Bangladesh Country

Number of Conventional Dwellings 300 242 250 Total Conventional Dwellings Urban Conventional Dwellings 200 179.2 181.6 Rural Conventional Dwellings

150 123.8

Millions) 100 79.1 55.4 60.4 56.5 42.9 31.9 50 22.6 10.9 Number of Dwellings (in 0 Indonesia US Mexico South Korea Country

Domestically, basic telephone service consists of an inter-island microwave system. Indonesia ranked sixth in the world for the number of main lines in use and tenth in the world for the number of mobile cellular telephones based on 2008 statistics. The number of cellular subscribers is rapidly growing. Indonesia also has a good international telephone service.

Internet is widely used by Indonesians. Indonesia ranked 42nd for the number of internet hosts based on 2009 statistics. Based on 2008 statistics, Indonesia was also ranked 11th in the world for number of internet users. In 2008, Indonesia had approximately 30 million internet users.

Indonesia’s has fully functional radio system. Indonesia has 11 national TV networks. Each of them has local transmitters. There were 54 local television stations as of 2006. Indonesians can subscribe from a variety of system operators. They can subscribe to a cable system operator or a direct broadcast satellite (DBS) television service. The channels available vary by operator. Basic cable system operators offer local stations and

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possibly a few more based upon the operator. Traditionally, DBS providers offer local channels as well as a wide variety of additional channels, based upon the customer’s subscription. This is much like the US. It is similar to comparing a Charter subscription to a DirecTV or Dish Network subscription. Overall, there is a wide variety of choices available for TV in Indonesia.

Transportation

Indonesia offers many modes of transportation. Public transportation is available in the form of taxis, buses, trains, and minibuses. Buses and trains are commonly used, especially for transportation between large cities. Minibuses and taxis are used frequently for transportation between small towns. In cities, about 30% of people use public transportation; the other 70% use cars or motorcycles. About 60% of privately owned vehicles are motorcycles. As of 2002, approximately 6.2 million Indonesians owned vehicles. Today, the ownership growth rate is estimated to be around nine percent. The growth of private vehicle ownership is rapid and much higher than that of roads. Traffic in major cities frequently becomes stopped and congested. The roads in Jakarta for instance have a capacity for approximately 1 million motorized vehicles per day. Yet, an estimated 1.5 million motorized vehicles pass over the roads of Jakarta every day.

Indonesia has a total of Indonesia's Roadways 437,759 kilometers of roadways, as of 2008. As you 300,000 258,744 can see, there are more paved 250,000 roads than unpaved. This 179,015 could allow for easier 200,000 transportation of goods. The 150,000 number of roads in Indonesia is growing at a rate of 100,000

Length (km) approximately one percent. 50,000 Looking purely at the 0 available roadways, it Paved Unpaved appears that transportation by road would be viable, but if you research further, traffic counters this. Within large cities, traffic would make this mode of transportation extremely inefficient and inconvenient.

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As you can see from the graph at right, there is a significant Indonesia Waterways and Railways amount of waterways. This 25,000 particular mode of 21,579 transportation wouldn’t be a 20,000 viable source of transportation for goods, but since Indonesia 15,000 is an island country 10,000 8,529 transportation by water would be both convenient and Length (km) 5,000 efficient if the destination is located along the coast. 0 Railways are not predominant Waterways Railways enough to be a viable source of transportation for products. Some railway transportation may be available, though.

Indonesia has many airports. This Indonesia Airports and Ships means that it would be easy to 1200 971 transport goods from island to island 1000 or even across an island. There are 800 683 also many ships available. Products 600 could be easily transported by ship, 400 especially for locations along the 200 coast. 0

Airports Ships

Labor

Job Market and Availability Indonesia, like many other Asian countries uses child labor. The actual legal working age is 12 years of age. A basic age law setting the minimum age at 14 was passed in 1951, but never implemented. Today, the minimum working age is 15. Child labor laws are very difficult to enforce. In 1994, the United Nations Commissions on Human Rights reported that there are 2.7 million children working between ages 10 and 14.

Healthy employer-employee relations generally exist. Due to this, workers can go to employers directly with complaints. There are also forums dedicated to communication between employees and employers. Workers are viewed as part of the “family” businesses. Employer-employee disputes are usually settled with a decent amount of ease.

Indonesian employers take feedback from their employees, in many cases through forums. Employees express their complaints, opinions, and defend the interest of

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workers. The forums have been found to be generally successful according to researchers and surveys.

State and mandatory benefits are as follows: “The social security system for private sector employees (Jamsostek) provides a benefit on retirement at age 55, on death before age 55, and on permanent disability. The benefit is equal to the contributions paid plus interest. Interest is currently 8% a year and is subject to a maximum of 10% a year. If the total is less than IDR 3 million, the benefit is paid as a lump sum. If it is more than IDR 3 million, it must be paid in installments over a 5 year period. On death prior to age 55 an additional lump sum of IDR 10 million is paid, plus a dependants’ allowance of IDR 200,000 a month for 24 months. Medical expenses reimbursement is provided for employees and up to three dependants” (Indonesia Benefits Network). Employers can also choose to offer other benefits such as medical insurance.

Indonesia’s labor force is made up of 42% women and 58% men. Islam Indonesia Labor Force is the predominant religion in 113.3 Indonesia so most of the workers 120 follow Islam. 100

80 66.8

60 46.5

Millions) 40 20

Number of Workers (in 0 Total Male Female

Industries Employment Sectors There are three main sectors 42.1 45 39.3 of employment. They are 40 35 agriculture, industry, and 30 services. As you can see from 25 18.6 the graph on the left, 20 agriculture has the highest 15

Occupation 10 percentage of labor force,

Percent of Labor 5 closely followed by services. 0 Industry is the smallest sector Agriculture Industry Services in terms of labor occupation, Sector but it is the most profitable in terms of GDP.

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The main industries in Indonesia are manufacturing, food, mining, tourism and oil and natural gas production. Textiles, apparel, and footwear are some of the main manufactured products. Rubber and production are two of Indonesia’s top industries and are a large source of job opportunities. There are also job opportunities in cereal production. Laborers are needed to harvest many agricultural products.

Workday The workweek is Monday through Friday, but some businesses consider Saturday a workday too. Saturday’s are only half-day if work is in session. The maximum workday is seven hours per day, or 40 hours per week, but if overtime pay is given, it is possible to work 9 hours per day or 54 hours per week. Most businesses open between 8 AM and 9 AM, and close between 4 PM and 5 PM. Banks and government offices open at 8 AM and close at 3 PM.

Work attire is usually fairly casual in Indonesia due to extreme heat and humidity. Since Indonesia is predominantly Muslim culture, conservative dress is important. Women wear shirts that cover their upper arms and skirts that are knee length or longer. Jeans are appropriate for in very casual situations. It is common for men to wear light colored, open-necked, long sleeved baltik shirts with a tie and dark slacks.

Businesses in Indonesia are somewhat flexible. Since the country is predominantly Islamic, employees can adjust their lunchtime to fit prayer time and in most cases are allowed to take a five to ten minute break for another prayer time after lunch. Only two of their prayer times fit in the typical workday.

Holidays of the five major religions are observed. That amounts to a total of 21 days. Workers only have a total of 12 leave days per year, though. New Year’s Day, Chinese New Year, the birthday of the Islamic Prophet Muhammad, the Day of Silence (New of the Balinese Calendar), Good Friday (the Friday before Easter Sunday), Buddha’s Birthday, Ascension Day, Ascension of the Prophet, Independence Day (August 17th), End of Ramadan, Feast of the Sacrifice, Islamic New Year, and Christmas are the most common holidays. Most of them are religious holidays.

Just as many US businesses, Indonesian businesses typically have a ranking system going from powerful to basic worker. The highest is usually a CEO/Director, then Vice President, followed by Senior Manager. Below Senior Manager are lower manager and supervisor levels, which are followed by multiple levels of basic employees or workers.

Education

Nationally, the education system entails six years of primary education. Children start school at age seven. Following primary, six years of secondary education are required. The secondary is divided into three blocks of two years. Higher education is heavily promoted. There are thousands of private postsecondary schools, and dozens of public institutions. English is part of the required curriculum.

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Enrollment Rate Enrollment Levels US enrollment levels are Secondary Level much higher than Indonesia’s. 100 Enrollment Ratio This implies that Indonesia 88.1 90 Tertiary has a high drop out rate. It Enrollment 80 72.6 also shows that Indonesia’s 70 education system may need 60 some level of improvement. 47.5 50 These low numbers could also 40 be because Indonesia is still a 30 developing country where as 20 14.6 the US is a highly developed 10 country already. Percent Enrollment (%) 0

Indonesia US Country

Literacy Rate As you can see from the graph Percent of Population that is Literate at right, Indonesia’s literacy 99 99 rate is over 90% according to 100 2004 estimates. These rates 95 have mostly likely improved 90.4 90 since then. Indonesia is a 86 developing country and 85 improvement happens quickly. Indonesia’s literacy rate is 80

higher than China’s, but Percent of Population (%) 75 Indonesia is significantly less Indonesia US Germany China developed. This shows that Country Indonesia has great potential.

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School Life Expectancy School Life Expectancy As a developing country, Indonesia’s school life 18 16.6 expectancy is low in 16 15.2 15.3 comparison to that of highly 14 developed countries like the 12 Us, Germany, and Australia. 10 10 Indonesia has a 12-year 8 education program from the 6 first year in primary education to the last year of 4 secondary education. So, 2 Life Expectancy (in years) according to the data, most 0 students drop out of school Indonesia US Germany Australia two years prior to graduation. Country With further development this could easily improve.

Overall, Indonesia’s education system is still developing. Indonesia is not as advanced as the US. Although Indonesia is behind the US, it still has a high literacy rate. In addition, English is taught to all students, which is very good for business. As a business dealing in tourism, Indonesians would have enough education to work with the business.

Clothing

Business Attire Business attire differs based upon circumstances. For a formal meeting, women wear a suit and hosiery. Women should only wear dark or muted colors for business. Bright colors are not appropriate. Men wear a suit and tie. For less formal business, men usually wear dark colored slacks, a light colored, long sleeve shirt, and a tie. Women must always cover their upper arms when dressed casual, and jeans are appropriate for very casual business, but never shorts. Due to the humidity and heat, it is necessary to bring extra clothing. You should always appear clean and fresh. This may require multiple changes in clothes, so it is important to be prepared. During rainy season, September – February, an umbrella is an essential part of the wardrobe.

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Traditional and Ceremonial Dress Traditional Indonesian dress is typically seen in rural areas. Traditional dress remains important for national ceremonial occasions. Men and women alike wear a lower body wrap- around called kain, which is a rectangular fabric usually in batik, or a sarong. In Java and Bali, women use a narrow sash called a stagen to hold the sarong and kain in place. There is a long sleeved blouse that is tight and often sheer called a kabaya that is worn on the upper body. Often, a kabya is made of lace, but it can also be made of cottons that are sheer, lightweight and elaborately decorated. In most cases, women drape a large rectangular cloth called selendang over the shoulder. Men generally only wear kain sarongs in their homes or for casual occasions. Teluk beskap, which is a combination of a Javanese jacket and kain, is the official national dress for men.

Casual Attire In Indonesia, casual attire can range from batik long dresses to sarongs. Women wear blouses that cover their upper arms and can wear jeans. Shorts are inappropriate for women. Both women and men can wear sarongs or kain. Men usually wear sarongs at home, or sometimes for informal occasions. Men may wear batik as well.

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Recreation and Leisure

Indonesia is a culturally diverse country and has many different recreational activities. These activities range from boat racing to kite flying and from badminton to soccer. There are many opportunities to visit natural attractions, large cities for shopping, and beautiful sandy beaches. There are an unlimited number of activities available in Indonesia.

The two most popular sports in Indonesia are football (soccer) and badminton. Football is the most common sport played in Indonesia. Many Indonesians begin playing at a young age and continue throughout life. Indonesians ranging from children to middle-aged men play football. The Football Association of Indonesia (PSSI) is the national football league. There are smaller domestic leagues for a variety of age groups. Football is played at family events and as a fun activity outside of competition. Badminton is widely played in Indonesia. It closely follows football in popularity. Indonesians have many badminton championships. For example, Indonesians are long-standing champions of the Thomas Cup men’s division and the women’s badminton championship. Rudy Hartono is a badminton legend. He is from Indonesia and he won the “All-England” Informal World Championship seven years in a row. Indonesians take badminton seriously. They are champions, but they also play the sport for fun. Many families play together or children and adults play recreationally.

Indonesia has a wide variety of tourist attractions ranging from the city of Jakarta to the extensive Temples. Jakarta is the capital of Indonesia. It is very large and has many skyscrapers, much like New York City. There are many national parks such as National Park, Gunung Leuser National Park, , and . These are just a few examples; there are many more. The Monkey Forest Sanctuary is yet another interesting attraction. Inside this lush, small, forested area, there are many moss-covered stone statues and between 140 – 200 monkeys. The Temple is an extravagant Buddhist temple. The structure looks like a lotus. It’s complex is one of the greatest monuments in the world. Prambanan Temples is the largest Hindu temple compound in Indonesia. It is regarded as one of the imperial temples in South – East Asia. Overall, there are many attractions in Indonesia available to tourists.

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Another amazing aspect of Indonesia is its gorgeous beaches. Many activities take place on a daily bases on the white sand and in the blue water. Along the southern beaches of Bali are many craft tables where all sorts of craft activities take place. Beach soccer is also a very popular beach activity. It is played both recreationally and competitively. Beach volleyball is also played on the beaches of Indonesia. There are also many activities that take place in the blue Indonesian waters. Boat racing for instance takes place during the Dragon Boat Festival. Snorkeling and scuba diving is extremely popular along the Indonesian coasts. Also, Indonesia offers excellent opportunities for surfing. Surfing competitions are held throughout the islands, but they mainly take place on Bali. Indonesia’s beaches are full of things to do.

Indonesia is full of things to do. Activities range from sports like football (soccer) and badminton, to beach activities like snorkeling and surfing, to tourist activities like visiting the Sacred Monkey Forest, Borobudur Temple, Prambanan Temples, and Jakarta. Indonesia’s diverse culture makes it a country where you can never run out of things to do.

Entry/Exit Information All foreign travelers are required to have a valid passport for a minimum of six months after the time of arrival. Tourists that are traveling purely for private purposes, may apply for a 30-day visitor visa on arrival at one of the airports. This visa may only be extended once. In order to receive an on-arrival visa, an onward/return ticket is required. In other situations a visa must be issued before arrival. Also, a visa is required to enter Indonesia, obtained before or in some exceptions, on arrival. Visa violations may result in jail sentences or substantial fines. All airline passengers are subject to a departure tax, which must be paid in Rupiah, cash only.

Language

The most prevalent languages are Indonesian (Bahasa Indonesia), English, and Dutch. There are also many local dialects. The most common of which is Javanese. In Indonesia, English is viewed as the ticket to employment and a higher standard of living.

Indonesian (Bahasa Indonesia) is the official language. It is the official, modified form of Malay.

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There are more than 700 living languages that are spoken in Indonesia. Some of the more common languages are as follows:  Javanese – Spoken in central and east Java, of the Austronesian family  Sundanese – Spoken in west Java, closely related to Madurese and Malay  Madurese – Language of the Madurese people of Madura Island, spoken on Madura Island and in eastern Java  Minangkabau – Spoken in west  Musi () – Spoken in southern Sumatra and hugely in Palembang city, influenced by Javanese  Bugis – Spoken in south  Banjarese – Spoken in south, east, and central , it is the native language of south Kalimantan  Acehnese – Spoken in northern Sumatra, it is a Malayo-Polynesian language  Balinese – Spoken on Bali, northern Nusa Penida, western Lombok, and eastern Java  Betawi – Spoken by people in Jarkarta

Top World Languages Including the Number of Secondary Speakers 1400 1200 1000 800 600

Millions 400 200 Number of Speakers in 0

e h n n s s sh du ali a i a nch r bic ese gli e a gese ng m an r an hine En ussi F di/U Ar rtu Be C Sp R n Ger n i Jap ri H Po da an Language M

World's Most Influential Languages

40 35 30 25 20 15 Influence 10 5 0 Point Value Based on ic e lish sh an an s ni ab m nese Urdu rench uge / Eng F ussi Ar hinese t di Spa R C Ger in Japa Por H Language

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Religion

In Indonesia, the majority of the population (about 88%) is Muslim. These people follow Islam. Other religions include Christianity and Roman Catholicism (8%), Hinduism (2%), Buddhism (1%), and other (1%). It is thought that the Islam religion was first brought to the northern tip of Sumatra in the 12th century, and it spread from there. Christianity was brought to the country by Dutch settlers. Hinduism can mainly be found on the island of Bali. It is intertwined with everyday life. The people in Bali basically live their religion. Buddhism is mostly a Chinese religion.

100% 88% Muslim 90% 80% 70% Christian + 60% Roman Catholic 50% Hinduism 40% 30% Buddhism 20% 8% 2% 10% 1% 1% Other 0%

Other

Muslim Hinduism

Buddhism

Catholic

Christian + Roman

Islam spread southeast throughout Indonesia from the northern tip of Sumatra where it was first brought to Indonesia in the 12th century. The religion is thought to have been brought to Indonesia by Muslim traders that traded along the vast coastline. Therefore, it turned into a trading religion. Once it moved inland, Islam began to quickly spread throughout the country.

The Christian and Roman Catholic religions were brought to Indonesia by Dutch settlers. In addition, there is a strong Portuguese influence in East Timor, an island country located on the border of Indonesia in southeast corner. There are a few Indonesian islands that are mostly Christian dominated. These include Flores, Moluccas, and Kalimantan.

“The Indonesian Constitution provides freedom of religion to all its citizens and states ‘every person shall be free to choose and to practice the religion of his/her choice’ and ‘guarantees all persons the freedom of worship, each according to his/her own religion or belief’. However, the First Principle of the State Philosophy' ‘Pancasila’, upholds a ‘Belief in One Supreme God’ ” (asiarooms.com). Generally, the government has discouraged religion from playing a role in politics, much like the US, yet there are underlying religious influences. Throughout Indonesia’s history it is possible to find

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political Islamic movements. As much as the government has tried and still tries to keep religion separate, Islam has had ways of weaving its way into the system. There are many Islamic organizations. One of the leading of which runs mosques, prayer houses, clinics, orphanages, poorhouses, schools, public libraries, and universities.

Due to the fact that the majority of the Indonesian population follows Islam, Indonesian workers are given paid time off during the workday for prayer time. According to research, followers of Islam are less likely to have intentions to leave the company they work for because they have a higher job satisfaction due to their priorities in life. It is thought that Islam has provided an ideological foundation for the development of personal attributes, which therefore promote economic development in Indonesia. There are many underlying effects of religion in Indonesian politics and economics.

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"EarthTrends: Nutrition: Calorie Supply per Capita." EarthTrends | Environmental Information. Web. 21 June 2010. .

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Appendix

Current Events

Current Event - Education 14-Jun-10 "Questions over teaching sex education in http://www.radioaustralia.net.au/asiapac/ Indonesian Schools" stories/201006/s2926670.htm Should sex education be taught in Indonesian Radio Australia Schools? Sen Lam

- Sex education is taught in schools from first grade and all the way through high school. - Sex education isn't a course, instead it is spread throughout other subjects. For instance, bits are intermixed with biology, religion, sports, and citizenship. - The Education Minister thinks that children shouldn't receive formal sex education. - Indonesian schools mainly focus on HIV and don't cover many of the other sexually transmitted infections. - Religion classes are - Sex education teaches students - Small amounts of taught in Indonesian about the dangers of having unsafe sex education are schools or irresponsible sex. taught in fifth and six - Sex education aims to give grade. Sex education students the knowledge necessary is also taught in eighth to protect themselves from sexual grade health classes dangers. as well as the two - Students are taught about gender health classes roles as well as respect within each required in high role. school. - Students are taught about a wide variety of sexually transmitted infections. - US schools discuss birthcontrol possiblilites, but encourage abstinance as well. - Religion courses are not taught in public schools and are only available in private schools.

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Travel Brochure

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Images

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Etiquette

 Do not crook your index finger to call someone over. This gesture is offensive.  No physical contact between men and women is made in public, except a possible handshake.  Leaving food on your plate signifies you are impolite; so eat all the food you are served.  Talking is impolite while eating dinner. Conversation is reserved for before or after the meal.  Whenever your host/hostess enters the room it is polite to rise from your seat.  Never eat while walking in public or chew on a tooth pick.  It is inappropriate to yawn in public. If you must yawn, cover your mouth.  Never touch anyone’s head, including a child’s head.  Hats and sunglasses are to be removed when indoors.  You should present each person you are meeting with a business card. When you offer your card it should be positioned so that the recipient can read it. Hold the card in your right hand and use your left hand to support your right wrist. The person receiving the card will take it with both hands.  If you are talking with someone and you say “yes, but…” this meanseans no.

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Country Selection Letter

Shawna Neilson International Market Research Specialist BIS Inc. 655 N. Third Central Point, Oregon 97502 (541) 494-6300 [email protected]

January 21, 2010

Dr. Johnny Allen Hendrix Human Resources Director BIS Inc. 845 United Nations Plaza New York, NY 10017

Dear Dr. Hendrix,

I would like to request permission to further investigate Indonesia. I have conducted some basic research and have found some very intriguing information. Indonesia’s population of over 240 million people allows for a culturally diverse country. The Indonesian economy has had struggles during the “global economy turbulence,” but compared to other countries, it has proved to be strong. Further investigation of Indonesia would prove to be beneficial.

Manufacturing plays an important role in Indonesia’s economy. Footwear, electronics, clothing, furniture, and paper products are included in the products manufactured in Indonesia. Natural resources can also be found. Bauxite, tin, copper, gold, coal, silver, as well as oil and gas are major resources found in Indonesia. The country has much to offer economically.

Indonesia appeals to my personal interest due to family origins. My grandmother was born and raised in Indonesia. I have wanted to learn more about the country and I also have interest in traveling there. The country is of great interest to me and I would appreciate the opportunity to research it further.

In the event of not being awarded permission to research Indonesia, I would like to request that I be assigned to either Romania as my second choice, or Malaysia as my third. I have had interests in Romania for some time. I find the Romanian legends to be extremely intriguing and I would enjoy learning about the country. Malaysia is the origin of the Malayan language which is one of the languages spoken in Indonesia. My

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Thank you for your time and consideration. I’m excited to continue my research on Indonesia or one of the other two countries. I can be contacted via email at [email protected] 6.org. I look forward to hearing from you and learning of your decision.

Sincerely,

Shawna Neilson, International Market Research Specialist

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Company Profile

Based out of Los Angeles, California, Paradise Hospitality is a travel agency offering clients the best possible experience when traveling to Indonesia. Paradise Hospitality offers its clients the best service and assistance in organizing their stay. At Paradise Hospitality, we strive to make your trip the best experience possible. We want to make sure that your stay in Indonesia is where smiles happen.

At Paradise Hospitality, we provide our customers with the best selection of accommodations and tours possible. At Paradise Hospitality, we take care of all the planning necessary, all we need to know is what island you want to visit, which choice of accommodations, what tours you are interested in, and of course dates. We will take care of your flight plans, we will organize your tours, and we will arrange your accommodations, as you desire. If you would like us to help plan your activities day by day, we can do that as well. We typically work with resorts. There are many to choose from, so you have unlimited possibilities.

Paradise Hospitality is well known for its exceptional service. In 2009, Paradise Hospitality We have been working with Indonesian businesses for a number of years now

- 40 - Shawna Neilson Indonesia and have established strong relations with the top resorts in Indonesia as well as countless other businesses. We consistently receive referrals and have repeat customers.

After many years of providing exceptional service to our customers purely through organization and making arrangements, we believe it is time that we expand our business further into Indonesia. Paradise Hospitality is ready to establish its own resort on an Indonesian island. There is no better time than now to make this expansion. We have strong relationships with other resorts and businesses in the area; we know the tricks of the trade from experience in working with resorts; and we will be able to offer lower prices to our customers if they stay in our resort. We will continue to offer accommodations at other resorts, but our resort will be more appealing to customers because of our lower prices. In addition, by owning our own resort we will be able to determine which tours and activities we want to offer ourselves and which tours we will continue to offer through the use of other resorts. With our own establishment we will be able to better serve our customers and we will be able to grow even further as a business. The best location would be along one of Indonesia’s beautiful beaches. The two most popular islands are Bali and Java. Either would be suitable. Both have a list of tourist attractions. Bali is most likely the better of the two choices, as it has some of the most beautiful beaches in the world, it is home to extravagant temples, and it is also home to the Sacred Monkey Forest. Expanding our business and setting up a resort in Indonesia would be extremely beneficial to both us as a business and as well as our customers because it is a great opportunity to increase profits and provide our customers with better deals and more options.

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